Innovation Sourcing Details

Process | Fee Structure | Engagement Steps | FAQ

Our Process

Serica’s unique market position and systematic approach enable us to source the best innovations from across China.

Innovation Sourcing

  • 1

    STRATEGY & PLANNING
    From broad product categories to technical requirements of a specific technology we work together to understand your needs and create clearly defined target criteria.

    (Optional) An innovation strategy can be developed on request

  • 2

    RESEARCH & EXPLORATION
    Conduct detailed market research to find innovators that meet your requirements, conduct basic due diligence (company reports and due diligence interviews), and compile a shortlist for your consideration.

    (Optional) Site visits can be conducted nationwide on request

  • 3

    WIN ECONOMIC INCENTIVES
    Engage and negotiate with regional governments to apply for tax breaks, logistics subsidies, and other generous incentives and support.

     

  • 4

    INVITE SUPPLIERS 
    Divide companies from the shortlist into groups by provinces or regions (depending on volume and size), then invite key decision-makers from each group to a venue in the capital of their province for a two-day ‘innovation sourcing event’.

     

  • 5

    TRAINING & COACHING
    Induction training that will onboard your team with the practical insights, strategies, and techniques they need to effectively promote, engage and negotiate with Chinese innovators.

  • 6

    SUPPLIER ENGAGEMENT
    Help you meet with, assess, and qualify each innovator who presents their products and solutions to you. Those who meet your expectations will be invited for a follow-up meeting where you can (with or without our support) negotiate a mutually beneficial deal.

    (Optional) Interpreters can be sourced upon request

  • 7

    CONTRACT NEGOTIATION (Optional)
    Conduct negotiations with innovators, with or on your behalf, to secure favorable pricing, terms, and other key provisions to ensure you win profitable, safe, and sustainable deals.

  • 8

    CONSOLIDATION & ACCOUNT MANAGEMENT (Optional)
    Help manage specific relationships and resolve conflict where necessary, identify new opportunities and provide ad-hoc support to your team.

Fee Structure

Fully tailored to your needs and goals, our monthly fees (based on a 12 or 18 month contract) are calculated from specific project variables, including industry complexity, resource allocation, and value created. Under certain conditions, we can reduce our fees by a maximum of 50% in exchange for compelling success fees.

VARIABLES

PROJECT FEE

(formula)
Complexity x Time x Value Created =
(formula)
,
(our rates)
$20-40k per month
(on average)
.

Serica does not, under any circumstances, work on a sweat equity or commission-only basis.

Value Added Solutions

Innovation Strategy: >$30,000
Site Visits: $1000-3000 per day
Contract Negotiation: 1-5% of the contract value
Post-Project Representation: $3000 – 10,000 per month (based on a bi-annual contracts)
Interpreters: $200 per hour (supplied by a third party)

Engagement Steps

Our engagement process is designed to be highly collaborative to ensure that we find the best solution for your company as efficiently and effectively as possible.

  1. Receive an initial consultation for free to discuss your goals for the Chinese market and how Serica’s solutions can help you achieve them.
  2. Sign a ‘Mutual Non-Disclosure Agreement’ to protect everyone’s interests. For mutual convenience and security, we send the agreement electronically (via DocuSign) for e-signature.
  3. We outline the basic details of our prescribed solution – covering the key opportunities, time-frames, and value created as well as the estimated project fees (calculated based on the variables above) for your consideration. Where needed, we can prepare a simple presentation with all of the above details to enable smoother internal discussions and decision-making.
  4. Once you have discussed it internally and arrived at a consensus on the broad solution, we will have a follow-up meeting to give you the opportunity to ask any questions and request changes to the scope.
  5. Building upon what was discussed and agreed upon in the previous meeting, we collaborate to develop an ‘Initial Proposal’ covering the precise scope, deliverables, milestones, and operation details.
  6. We conduct a ‘Proposal Review Meeting’ where we both have the opportunity to discuss and further refine the project’s scope, deliverables, and operational details.
  7. Based on discussions in the previous meeting, additional details are added to the proposal, alongside ‘Terms & Conditions,’ transforming the proposal into a legal contract – which will be sent electronically (via DocuSign) for e-signature.
  8. We begin working together to achieve your commercial goals and international ambitions.

Frequently Asked Questions

1. What is the average length of an Innovation Sourcing project?

Between 12 to 18 months, depending on the project scope and complexity.

2. What sectors do you focus on?
Healthcare & Lifesciences, Energy & Sustainability, Automotive & Mobility, Software & Platforms, Sports & Entertainment, and Digital Commerce.

3. What regions do you focus on?
Yes, our focus is on the Yangtze River Delta (Zhejiang, Jiangsu & Shanghai), Guangdong Province, and Beijing which contain the majority of the best innovators in the country.

4. After the project is completed can you work in a reduced capacity to continue to help us grow?
Yes, we typically reduce our fees by approximately 75% after the project is over to enable you to continue to access the Serica Launchpad and our team’s expertise.

5. Are expenses covered?
No. However, the contract we sign states that all expenses must be pre-agreed in advance and that receipts must be provided before any reimbursement is paid.

6. Are there any third-party fees we will incur?
Yes. At a minimum, there will be legal, banking, and government fees that you will incur. Serica will endeavor, through its network of strategic partners, to keep these costs to a minimum.

7. What are your billing cycles?

We bill quarterly, with the first payment due within ten (10) business days of the contract being signed. If any additional payments such as commission or another type of performance-based bonus) has been agreed in return for a reduction in professional fees, then that payment would be due within ten (10) business days of completion of the pre-agreed “payment trigger”.

8. What currencies do you accept?
USD, GBP, EUR, SGD and CNY.

9. What jurisdictions apply to Serica contracts?
Our default jurisdiction is Singapore due to its advanced legal system and efficient (and cost-effective) dispute resolution. We can accept other well-regarded Common Law jurisdictions such as the United States and the United Kingdom as alternative jurisdictions.

10. Can we sign a Non-Disclosure Agreement before our consultation?

Yes, as long as it is a Mutual Non-Disclosure Agreement with Singapore, United States, Canada, or the United Kingdom as the jurisdiction and signed electronically. Serica has an excellent MNDA that you can review here.

11. Why do you exclusively use digital contracts, proposals, and invoices?

The ability to receive, sign, and pay electronically provides both of us with enhanced security and greater convenience. Learn more.

12. Can you help organize visas, travel arrangements, and source interpreters?
Yes. We can sponsor your visa, help you find hotels, and connect you with reliable (and cost-effective) interpreters.

13. How do you track and report project progress?
We provide you with direct access to our project management software that enables you to track and review our progress in real-time.

14. What else do you need from us?
Serica takes a highly collaborative approach to every project we undertake. Throughout the project, we expect and need you to dedicate the time, focus, and resources towards achieving the goals we set together.

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